The bad news is that California is facing a "skills gap” - a shortage of college graduates - that threatens its economic future. But the good news is that modest improvements in college enrollment, community college transfers, and the college completion rate, particularly in the California State University system, could help to narrow that gap substantially. These improvements will not only help California’s young adults succeed in an increasingly high-skill economy but will also benefit the state by increasing tax revenues and allowing for greater economic growth.